LEGAL TEXTS AND REFERENCES FOR VAT IN SENEGAL

• The taxpayer concerned will have to produce the provision statement (cf. Art. 31.4-2 CGI).
• Law n°2012-31 of December 31, 2012 on Senegal’s General Tax Code (article 352 et seq.)
• Law n°2018-10 of April 30, 2018 amending the CGI

WHAT YOU NEED TO UNDERSTAND

The following are subject to VAT in Senegal
supplies of goods
and
of services
made for consideration by a taxable person as such, as well as
imports
.

For supplies of goods, the principle is the place of taxation. The place of taxation is the place where the goods are located at the time of delivery.

Where goods are shipped or transported, the place of taxation for the supply of goods is the place where the goods are located at the time the shipment or transport leaves for the purchaser. However, goods imported into Senegal are taxable in Senegal.

For supplies of services, the place of taxation is Senegal if the service is used there or if the person on whose behalf the service is rendered is established there.

Certain operations are expressly exempted from VAT by the tax legislator (cf.art. 361 CGI) Example: the import of goods placed under a suspensive customs procedure and the supply of services related to goods placed under the customs transit procedure.

Customs suspensive arrangements: Companies eligible for the investment code are considered to be under customs suspensive arrangements during the investment period.

Taxable event
VAT in Senegal

For
sales, real estate work
,
contract work
the operative event is the delivery of the goods or work.

For services, the operative event is the performance of the service.

For imports, the operative event is the release for consumption.

VAT tax base

For supplies of goods and services to taxable persons under the sales tax system, the tax base is the consideration received or receivable by the supplier or service provider.

Taxes, duties and levies are included in the tax base, as are commissions, interest, packaging, transport and insurance costs. Price supplements and equalization allowances are also included in the tax base.

VAT rates

There is a standard rate of
18%
and a reduced rate of
10%
applicable to accommodation and catering services provided by approved tourist accommodation establishments.

VAT liability

For supplies of goods and services, VAT is due in the month following the chargeable event. It is payable no later than the 15th of that month.

For imports, vat is payable when you cross the customs line.

Special VAT regimes

Tour operators, travel agencies and second-hand goods traders are subject to VAT. VAT is applied to their profit margin.

Certain conditions must be met by used-goods dealers. For example, whether the trader bought the goods from :

• A non-taxable person
• Another taxable person insofar as the supply of the goods by this other taxable person was exempt from vat.
• Another used-goods trader under the margin system